E
XECUTIVE
S
UMMARY
The banking sector in Pakistan comprises of the following types: State Bank of Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving Banks, Cooperative Banks, Specialized Credit Institutions. The S.B.P. is the Central Bank if the country and was established on 1st July, 1948.
On November 7th 1959 United Bank Limited appeared on the banking horizon in Pakistan and started operations with its first branch namely McLeod Road now I.I Chundrigar Road at Karachi. Today UBL has 1056 Domestic and 15 Overseas Branches.
UBL was nationalized in 1973 but it is privatized in 2002 as Govt. handed over the management of UBL, the third largest party of the country, to the successful bidder -Consortium of Abu Dhabi Group (UAE) & Best way Holding Limited (UK) as they have purchased 51% shares and have elected H.H.Shaikh Nahayan al Mubarik as Chairman UBL. On May 18th 2004 Mr. Atif Bokhari was appointed as anew CEO of UBL.
To open an account the customer has to meet the manager with an introducer. Individual, Joint, Partnership, Private Limited, Public Limited, Sole proprietorship and Minor accounts are the types of accounts. Different documentation is required for each type of account but the application form is same for all types of accounts.
In Deposits department actual relationship is started with the bank, that relationship is in the form of deposits or the accounts that are opened in the bank. At UBL, customers can deposit in the form of current, saving, call, term and fixed deposits. Main difference between current and saving is of the profit that is provided only on saving account to the customer.
In Cash department the main activity is of payment and receipt of cash and facility of utility bills collection is also performed at the counter of cash department. A cash book balance is maintained at the end of the day that is been provided in the form of statements that can be got from the computer. Accounts department is responsible for all the activities happening inside the branch in the form of any transaction whether it is for the customer or for the employees to provide them with utility services.
In Remittance Department like any other bank UBL also have instruments for transferring of money like Pay Order, Demand Draft, Mail Transfer, Telegraphic Transfer. For remittances UBL provided many services namely TezRaftar, Money Gram and Click N Remit. As for as there Foreign Exchange Deportment is concerned its activity is handled at the central branch as they have a department their and they provided the many services to the importers and the exporters in the trading of products. Preparation of LC on behalf of importer for the exporters and its bank is the main activity that is perform in the department.
The main activity of the Central Branch, Hussain Agahi Branch is to Advance the money that was collected in the form of deposits. They deposit money at low rate and advance it at high rate to earn the margin of profit. Financing can be made in the form of cash finance, demand finance, bridge finance, consortium finance, agriculture finance etc. Security is of utmost importance in this area and security can be like mortgage, pledge, hypothecation of stock, raw material or the guaranties and banker’s lien.
With their step in the field of customer financing like house and car financing and their services of Hamrah Rupee Traveler check, UBL Wallet (ATM card) and their online system of UBL-ONLINE it has been viewed that they will make tremendous achievement in the days to come. In my view UBL has faced some hard time but after its privatization and its response to the changes in sector they will achieve what their ultimate goal is.
HISTORY OF BANKING
“Bank is a pipeline through which currency moves into and out of circulation.”
Bank accepts deposits and repays cash to its customers on their demand. The Bank borrows money at a lesser rate of interest and lends it to the borrowers at a higher rate. It is thus a profit-lending concern. Bank cannot lend all the money that has been deposited with it. It has to keep a certain portion of the total deposits in cash with them in order to meet the cash requirements of the individuals and business concern.
Banking History
Word Bank is said to be derived from the words “Bancus” or “Banque”which means bench Other authorities hold the opinion that the word bank is derived from the German word “Back” which means ‘joint stock fund’. The history of banking is traced to as early as 2000 BC. The priests in Greece used to keep money and valuables of the people in temples. These priests thus acted as financial agents. The origin of banking is also traced to early goldsmiths. They used to keep strong safes for storing the money and valuables of the people. The persons who had surplus money found it safe and convenient to deposit their valuables with them. The FIRST
STAGE in the development of modern banking, thus, was the accepting of deposits of cash
from those persons who had surplus money with them.
The goldsmiths used to issue receipts for the money deposited with them. These receipts began to pass from hand to hand in settlement of transactions because people had confidence in the integrity and solvency of goldsmiths. When it was found that these receipts were drawn in such a way that it entitles any holder to claim the specified amount of money from goldsmiths. A depositor who is to make the payments may now get the money in cash from goldsmiths or pay over the receipt to the creditor. These receipts were the earlier bank notes. The SECOND
STAGE in development of banking thus was the issue of bank notes.
Internship Report 3
1
Overview Of Banking
1
The goldsmiths soon discovered that all the people who had deposited money with them did not come to withdraw their funds in cash. They found that only a few persons presented the receipt for encashment during a given period of time. They also found that most of the money deposited with was lying idle. At the same time, they found that they were being constantly requested for loan on good security. They thought it profitable to lend at least some of the money deposited with them too the needy persons. This proved quite a profitable business for the goldsmiths. They instead of charging interest from the depositors began to give them interest on the money deposited with them. This was the THIRD STAGE, in the development of banking.
By experience the banks came to know that they could keep a small proportion of the total deposits for meeting the demands of customers for cash and the rest they could easily lend. They allowed the depositors to draw over and above the money actually standing to their credit. In Economics terminology we can say that they allowed the overdraft facilities to their depositors. This was the FOURTH STAGE, in development of banking.
When every bank issues receipts and most of them allowed the overdraft facilities, there was then too much confusion in the banking system. The banks in order to earn profits could not keep adequate reserves for meeting the demands of the customers for cash. The failures on the part of the bankers to return money caused widespread distress among the peoples.
In order to create confidence among the people, steps were taken to regulate the banking organization. A conference was held in Nuremberg in 1548. It was decided that a bank should be set up by the state, which should streamline the banking organization and technique. The first central bank was formed in Geneva in 1578. Bank of England was established in 1694. The responsibility of issuing of notes is now entrusted to a central bank of each country.
COMMERCIAL BANKING IN PAKISTAN:
A
t the time of partition total number of Banks were 38 only. Out of these Banks the Pakistani Banks were only 2 , Indian Banks 29 & Exchange Banks were 7. The total of deposits of Pakistani Banks was Rs.880 Million. & advances were Rs: 198 Million.. According to banking companies ordinance Banks are the companies, which transacts the business of Banking in Pakistan.Commercial Banks have constituted the most important [part of the intuitional credit in the economy of Pakistan. Being the largest source of credits, Banking Industry is a pivot of whole the economic activities in Pakistan. Section 37(2A) of State Bank of Pakistan Act 1965 lays down that the Banks must have paid-up capital & reserve of not less then Rs: 5 Lac & fulfilling certain other requirements for declaring as “Scheduled Bank”.
At the time of independence Bank services was badly affected. But with the passage of time these are improving. The government of Pakistan nationalized all Banks in early 1974. This act was done to minimize control of few hands over banking. But this step was proved e futile for the Banking in Pakistan. So the Govt. had to revise its decision in1990. Two Banks (Allied Bank Of Pakistan Limited & Muslim commercial Bank Of Pakistan Limited have been denationalized. Since then Banks were working well. Now slogan of the Banks is to serve their customers in the best possible manner.
Professor Berton:
“Banks are the guardian & distributor of money “.
Similarly we can say that it is a pipeline thorough which currency moves into & outside the circle. Banks accept deposited of money and repay it on demand. Bank borrows money at lesser rate of interest & lends it at higher rate of interest. In this way Banks earn money. Bank do not lend all money they collect, they keep certain portion of it as reserve to meet the uncertain demand of the customer.
FUNCTIONS OF A COMMERCIAL BANK
In general terms the functions of a commercial bank can be classified under the following main heads.
1. ACCEPTING DEPOSITS
Some people have an excess money and they want to deposits it to some honest man or an institution which can give them some profit. So the first function of commercial bank is to receive deposit there are three types of deposits.
1.1 Demand Deposits or Current Deposits
Some people deposit their excess money in the current accounts and they can withdraw their money deposited in this account at any time during the banking hours, so bank is not ready to give interest on it.
1.2 Fixed Deposits
These deposits are fixed for a particular period. Commercial banks also pay an interest on these accounts. An important thing related to it is the varying interest rates for the different period deposits. Interest rate increases with the increase in the fixed deposit period.
1.3 Saving Deposits
To create the habit of savings, bank accepts the saving deposits and pays an interest on these deposits. And this rate of interest is greater than the demand deposits.
2. ADVANCING LOANS
Bank also advances the loans to the merchants and charges the interest. It is the major source of its income. It also issues the loan for short term, medium term and for long term. And bank receives the higher interest from the borrower for the long term loans offered.
3. DISCOUNTING OF BILL
Commercial banks also discount the bills and facilitate the business; for example one businessman purchases anything from another person and promises to pay after one month. The seller will write a bill to the buyer and there will be an order that after one month the buyer will pay the amount to the seller. Buyer will sign on the bill. In other words buyer will accept the responsibility of that amount. If seller is in need of money, he will take it to the bank and will receive the money by discounting the bills. The commercial bank also may rediscount it
from the central bank.
4. CHEAP MEDIUM OF EXCHANGE
By issuing cheques and drafts bank provides cheap, medium of exchange. 5. TRANSFER OF MONEY
The commercial bank is very helpful in transferring the money from one place to another by issuing the drafts. This is very popular concept in the modern world and widely used in the business community.
6. CUSTODIAN OF PRECIOUS ARTICLES
Banks also provide lockers for the safety of precious articles. So now everyone can secure his precious metals like gold, silver, etc., and bank charges a very nominal charge for this facility. 7. AGENCY SERVICES
Commercial Banks also perform the duty of an agent. It collects and pays on the behalf of the customers.
8. INVESTMENT
On behalf of the customers all the banks also make an investment in different companies and industries. And banks receive nominal charge from the customers.
9. CREATION OF CREDIT
It also creates and extends the volume of credit. 10. FACILITATING TRADE ACTIVITIES
It also provides the finance to the foreign trade. Letter of credits are issued by the commercial banks for the foreign payments.
11. PURCHASE AND SALE OF SECURITIES
The commercial bank purchases and sells the securities, for itself and sometimes on the behalf of the costumes.
12. ACTING AS A TRUSTEE
If a client directs his bank to act as a trustee in the administration of a business, the bank performs this responsibility.
13. HOME SAVING ACCOUNT
This type of account offers the facility to the account holder to save money right home and put in the locker provided by bank. The key of the locker remains with the bank that sends its officer every week to collect the amount from the locker. Now this facility is no longer in practice.
13. PLASTIC MONEY
The plastic cards that can be utilized as money are called the plastic money. For instance, a. Debit Card
b. Credit Card c. Charge Card a. Debit Card
In this card facility the account holder can only utilize his own amount kept in his deposit. ATM (Auto Teller Machine) card is the example of debit card.
b. Credit Card
In this case the customer has not much amount in his or her account but the Bank gives him facility to over draft (OD) up to the maximum limit of 5 lacs depending on bank-customer relationship and the market value of that person. The banks are sole agent of American Express. Credit Card is the loan facility which is given on only personal guarantee. If a customer is a salaried person then the bank issue credit card facility up to three times of his or her salary. Suppose a person’s salary is of Rs. 23,000/-. Then the bank will give him credit card of Rs. 75,000/-. But each bank has different criteria in issuing any facility.
Annual charges are charged on this facility. And charges are on the basis of limit of credit card. More the limit of credit card, more would be the charges on it.
If the customer repays the over drafted amount to the bank within a month then the bank does not charge the mark-up on it except of annual charges. Other wise the bank will charge the mark-up on daily basis but annual charges are also have to pay.
This is a ‘Clean Loan or Clean Facility’ (a loan without any tangible security). Because here only personal guarantee is involved.
c. Charge Card
it is same to the credit card. But the only difference is that the charge card is not a ‘Clean Facility’. Because the bank gets the property under lien or mortgage against this credit facility. NOTE
All these three cards are used in that hotels, shopping malls and transport offices where there is the facility of Merchant Arrangements. Merchant Arrangements means the shops to which the bank has online contact. Different banks have the different Merchant Arrangements. The shop keeper enters the password into the machine and get the account information of the card holder and debit the amount in card holder account and credit it in the shop’s account.
MOBILE BANKING
In mobile banking the customers can do all the transactions sitting in their homes by using internet. In this type of banking first of all you have to open the website of the bank in which you have the account. Then you have to give a password to enter in the data base of the bank.
ROLL OF COMMERCIAL BANK IN THE ECONOMY DEVELOPMENT OF
PAKISTAN:
Banks play an important role in the economic development of country. If our Banking system is not in accordance to the economic requirement then how it can play a vital role in our developments. The State Bank of Pakistan is at the apex and all the commercial Banks have to follow the rules of State Bank of Pakistan. Role of the banking sector can be judged by the following facts:
SAVING MOBILIZATION:
The commercial Banks namely United Bank Limited Pakistan, Habib Bank Ltd, Allied Bank Of Pakistan Ltd. & National Bank has opened Branches in urban areas & rural areas to mobilize savings of people.
FINACCING OF DEVELOPMENT PROJECTS:
Banks & other financial institutions like ADBP, IDBP, and PICIC etc. Advances short & medium terms loans for financing of the development projects both in the private & public sectors .So they helping to accelerate the rate of progress (Economic) in the country.
ENHANCING TRADE ACTIVITIES:
The credit institutions collect the savings of people & make them available for facilitating the trade activities both inside & outside the country.
CREATING CLIMATE FOR CAPITAL FORMATION:
A developed baking system stimulates the growth of economy by creating favorable climate for capital formation in the Country.
HELP OF STATE BANK OF PAKISTAN IN ACHIEVING MONETARY PUBLISHES:
Commercial Banks under the supervision & guidance of the S.B.P help in implementing & achieving the objective of monetary policy, which vary from time to time.
ASSISST IN PLANNED DEVELOPMENT:
Commercial Banks are profit-seeking enterprises. In order to maximize profit they have the incentive from S.B.P to maximize the limit of finance. An organized Banking system keeps balance between the liquidity * profitability, thus assists in the planed development of the Country.
PROFIT SHARING SCHEME:
Commercial Banks receive surplus balance of the households and business & pay interest on the deposit of client. The depositors instead of having a fixed return on the deposit will share in the profit & loss of the Bank. The profit & loss scheme arrangement is the alternative to interest, under an Islamic economic system, which is since on the experimental basis in Pakistan.
INTRODUCTION OF
UNITED BANK LIMITED
The decision to establish UBL was taken in June 1959 and the company was registered on July 24, 1959. United Bank Limited started the operations on 7 November 1959 with its first branch namely McLeod Road now I.I Chunrigar Road at Karachi. On 9th November 1959 the Gazette of Pakistan notified and included UBL in its list of scheduled banks operating in Pakistan. The first president of the UBL was Mr. I. I. Chundrigar. Most of the branches of Union Bank Ltd. were merged into UBL to work as UBL’s subsidiary .The head office was at Dhaka.
With its shortest span of time UBL emerged as dynamic and large international organization. In 1969 the Management of Union Bank Ltd. Incorporated in former east Pakistan, was handed over to UBL, which was later emerged with UBL in early seventies.
The Bank continued its operations as private banking company until 31st December 1973 when it was nationalized, in the large nationalization process in the government of Zulfiqar Ali Bhutto, along with other banks operating in the country and other two banks namely Pak Bank of former East Pakistan and Commerce Bank Ltd. Were merged with UBL.
A Bank , like the society it serves should be dynamic as banking is about people customers with their needs and opportunities and staff with skills, experience and resources. UBL has shown dynamism since its inception. There have been many changes in the structure, functions and the services provided. These changes reflect the changing requirements of our developing economy as a whole and those of Industry, Commerce and private Individuals.
On October 19th 2002, biggest event occurred in the history of UBL. As UBL was privatized. The Government handed over the management of UBL, the third largest bank of the country to the successful bidder – Consortium of Abu Dhabi Group (UAE) and Bestway Holding Ltd. (UK). The sales agreement for the transfer of 51% shares was signed by Privatization Minister Altaf M. Saleem and Bestway Holding, Sheikh Nahayan Mubarak Al Nahayan at a ceremony. This event was declared as a “New Journey for UBL”.
On May 8th 2004, Atif Bukhari took over the charges as new Chief Executive Officer of UBL from Amar Zafar Khan, who served UBL for more than seven years. UBL officially announced the appointment of Atif Bukhari as its CEO. Bukhari was previously Senior Executive Vice
President (SEVP) and Group Head, Corporate and Investment Division of Habib Bank Ltd. He was also a member of the HBL Management Committee.
In the view of highly impressive growth and development achieved during its 46 years of experience, UBL has come to be accepted as one of the most progressive and dynamic components of the banking industry in Pakistan.
FUTURE STRATEGY
UBL expects its strong customer focus to drive the bank’s future business strategy. On the domestic side bank has already launched its consumer banking business. Increased investment is targeted in developing Human Resources ; Infrastructure and internal system support the aggressive consumer initiative and explorations of new avenue generation. The first step under this initiative is the launch of the bank’s ATM / Debit Card, branded as UBL Wallet. Furthermore UBL has plans to introduce a full suite of innovative consumer finance products designed to capture a significant share of the local consumer financing market and tap into the current growth in demand of such financing.
Personalized Service and Dynamic Approach
in order to meet its goals and capture the market share the Bank employed professional and skillful approach to the management, which took a series of successive measures to educate the people of Pakistan banking and saving minded. Various drives for the mobilization of saving and other accounts were initiative. The knowledge of customer’s business market research and business planning, visits to customer at their door steps, development of personalized relational ship with business community, fixation of seasonal business targets and follow-ups to achieve these goals attained prominence. Flexibility, delegation of authority to the lowest possible level and encouragement by initiative were the key factors, with helped the bank, to achieve the objectives.
CATALYST OF CHANGE
UBL emergence proved catalyst and brought changes in the banking sector as a whole. The Bank-Consumer relationship attained a new dimension and courtesy, politeness and efficiency gained fundamental importance. Convenience for the customer remained a core and criterion
for this relationship. UBL initiated the scene in the office and branches redesigned and modernized.
INETRNATIONAL OPERATIONS
After achieving dynamic progress domestically, the Bank took a basic decision to make its presence felt Internationally and to cater to the needs of importers and exporters as well as its shares in the international market, foreign trade, UBL opened its first branch in 1963 in London (UK), the most important center of the international finance and trade.
The UK operations of UBL were closed during the year 2002 and along with the branches of National Bank of Pakistan a new bank namely Pakistan International Bank has been incorporated in UK with 55% share holding of UBL.
In Oman the share holding in Commercial Bank of Oman was withdrawn however an exchange company namely Oman United Exchange Company a joint venture was formed in 1983. The bank has also withdrawn its share holding the United Saudi Commercial Bank, Saudi Arabia as well as United Bank of Lebanon and Pakistan SAL.
The UBL global network with its strategically located overseas branches and affiliates, covering almost all major financial markets of the world, is well positioned to act as a correspondent bank for Pakistan and currency transaction. With its strategy to reach its customers in various diversified markets across the globe, UBL is progressing fast in the arena of cross border ventures with an appetite for commercial and country risks. To meet the required international standards of modern banking UBL is the first Pakistan bank to shift its international division from Karachi to Dubai.
At present UBL and its subsidiaries are:
United Bank Ltd. Holding Company Pakistan International Bank Joint Venture
Oman United Exchange Co. Joint Venture United Bank Ag-Zurich Subsidiary United Assets Management Co. Ltd. Subsidiary United Executor and Trustees Co. Ltd. Subsidiary United Bank Financial Services (pvt) Ltd. Subsidiary
READY FOR 21
STCENTURY
UBL has stepped into the 21st century with confidence. Know that the bank has been privatized and 51% share have been purchased by investors i.e. The Best Ways Group UK and Abu Dhabi consortium electing H.H Sheikh Nahayan Al Mubarak as Chairman UBL. UBL has geared itself to provide services, which the customers in modern banking expect from the bank.
The bank has also planned to play its dynamic role in the overall development of the country. It is now well equipped with latest technologies and professional experience to face the future with determination and confidence and with its high aims and sense of direction to serve the nation with zeal and devotion.
REORGANIZATION OF DOMESTIC OPERATION
In 1986, the organizational structure of domestic operations of the bank was reformed and decentralized on the basis of provinces. As a result provincial headquarters were established at Karachi, Lahore, Peshawar and Quetta in order to meet the needs of sanctioning loans and other facilities to the trade, industry and agriculture of each province. Azad Kashmir was serrated from NWFP and made separate region.
The quantum of work immensely increased due to the growth of economic activities and phase of industrialization and other change in Punjab and Sind. It was also considered necessary to improve the quality of advances and to expedite the recovery process of the loans and advances. Beside above the economic condition of the country also changed due to privatization policy, establishment of a number of new private banks as well as expansion for operations by the foreign trade and banks in major cities.
For above changes, high power committees constituted by the Govt., which recommended structural, and other reforms, the details of which are received from Pakistan banking council are follows:
FORMATION OF REGIONAL HEADQUARTERS
The provincial chiefs of Punjab, Sind, NWFP, and Baluchistan are ceased to function and in their place nine regional chief executives started functioning in the nine major cities. The new segmentation of UBL’s branches on the basis of regions can be looked from the
following:
PROVINCE WISE REGION ALLOCATION
Province/Area Region Name
Sind Karachi Do Hyderabad Punjab Lahore Do Faisalabad Do Multan Do Islamabad NWFP Peshawar Baluchistan Quetta
Azad Kashmir MuzafarAbad
Domestic Network of Multan Region
COMMUNITY SERVICES
UBL is committed to the welfare of Pakistan. It lends to farmers for the purchase of tractors, Multan Region 225Branches
Head Office 1
Multan 48
Bahawalpur 38
Dera Ghazi Khan 36
Rahim Yar Khan 32
Sahiwal 38
superior quality seed and fertilizers. UBL further fosters the individual welfare and well being of the common man by lending house building finance and loans to set up small businesses. UBL has played a leading role in the dissemination of Computer Technology in Pakistan and is dedicated to the promotion of sports.
♦Agricultural Loans
♦Small Business Scheme
♦UBL Computer Training Institute
♦Staff Colleges of UBL
♦UBL Sports Complex
AGRICULTURAL LOANS
UBL’s agricultural loans on easy terms and conditions to small-scale land owning farmers boost the country’s economy and yield greener harvests. UBL enables farmers to buy good quality seeds, fertilizers, pesticides and agricultural implements.
SMALL BUSINESS SCHEME
Under the Small Business Scheme, UBL is providing loans on easy terms to those who wish to set up their own small-scale business. This scheme is aimed at spreading prosperity in the country by reducing unemployment. As more and more people start their own industrial units, the country will move steadily towards economic self-reliance.
UBL COMPUTER TRAINING INSTITUTE
UBL is a pioneer in the computerization of banking in Pakistan, and now plays a leading role in the dissemination of Computer Technology in Pakistan and is proud to be a part of the Government’s Computer Literacy Program aimed at preparing the younger generation to meet the challenges of tomorrow.
UBL, the leading user of Computer Technology in the Banking Sector has set up most modern facilities at Muzaffarabad, Azad Kashmir, and Sheikhupura for imparting training to the educated youth under the Government’s Computer Literacy Program. These centers are equipped with state of the art hardware and audio-visual aids and are manned by experienced professionals.
STAFF COLLEGES OF UBL
The UBL has three staff colleges, which are generating banking trained personnel. These colleges are at Karachi, Lahore and Rawalpindi, established in 1964, 1978 and 1977 respectively. These staff colleges are providing facilities of training to the employees of the bank so as to meeting the growing need of the banking field and coping with the changing environment of the country.
UBL SPORTS COMPLEX
In addition to providing professional banking services, the bank continued to play an important role in the promotion of sports in the country. Towards this end, the bank has already
constructed a big sports complex in Karachi, where all types of facilities for sports like cricket, hockey and flood light courts for tennis and basketball have been provided.
ORGANIZATIONAL STRUCTURE OF
UNITED BANK LIMITED
Organization Chart at Branch Level
Management Hierarchy
Management Hierarchy
President
President
Branch Manager or Area Operational Manager Internal Audit
Area Manager (A.M)
Credit Committee I.T Customer Deposit Foreign Exchange Cash & Clearing Bills & Remittances
Senior Executive Vice President (SEVP)
Senior Executive Vice President (SEVP)
Executive Vice President (EVP)
Executive Vice President (EVP)
Senior Vice President (SVP)
Senior Vice President (SVP)
Vice President (VP)
Vice President (VP)
Assistant Vice President (AVP)
Assistant Vice President (AVP)
Officer Grade 1 (OG 1)
Officer Grade 1 (OG 1)
Officer Grade 2 (OG 2)
Officer Grade 2 (OG 2)
Officer Grade 3 (OG 3)
Officer Grade 3 (OG 3)
Operational Staff
Operational Staff
UBL SETUP
BOARD OF DIRECTORS
Board of Directors are the owners of the bank and governs the Bank’s Affairs, which currently consists of President Chief Executive Officer & seven directors. The CEO has an
EXECUTIVE COMMITTEE Treasury & Capital Market Corporate Banking Comercial Banking Agri Loans Finance Department Investment Group Marketing Department IT Department Consumer Banking Audit & Inspection Service & Quality Human Resource Mgt.
overall responsibility for the strategic direction, government relations and to manage the portfolio of business and its functions.
Chairman
His Highness Shaikh Nahayan Mabarak Al Nahayan
Deputy Chairman
Sir Mohammed Anwar Pervez OBE
NAME
DESIGNATION
His Highness Sheikh Nahayan Mubarak Al Nahayan
Chairman
Sir Muhammad Anwar Pervaiz, OBE, HPK Deputy
Chairman
Mr. Atif R. Bukhari President & CEO
Mr. Omar Z. Al Askari Director
Mr. Zameer Muhammad Chaudary Director
Mr. Ahmad Waqar Director
Mr. Javed Saqib Malik Director
President & CEO Mr. Atif R. Bokhari
Director
Mr. Omar Ziad Jaafar Al Askari
Director
Mr. Zameer Mohammed Choudrey
Director Mr. Ahmad Waqar
Director
Mr. Javed Sadiq Malik
Director
Mr. Aly Shah
Barrister-at-law, Company Secretary
EXECUTIVE COMMITTEE
The Head of the Executive Committee is the President of UBL (Mr. Atif R. Bokhari).
Mr. Atif R. Bokhari President and C.E.O
Mr. M.A. Mannan Group Executive Consumer/Commercial Bank
Mr. Nauman Hussain Group Operations &
Mr. Risha Mohyeddin Group Executive Treasury
& Capital Markets
Mr. Aameer Karachiwalla Group CFO Mr. Ayaz H. Shamsi Group Executive Human Resources Mr. Muhammad Ejazuddin Group Audit &
Inspection Head
Mr. Tariq Mohar Group Business Support / Collections Head
Mr. Mohammad Asghar Group Commercial Bank Head
Mr. Ali Sameer Group Head SAM
1-Treasury
The main purpose of the treasury department. Of any company is to maintain the liquidity for that company. Same is the case with Banking Industry as well.
The treasury department have to manage the buffer stock (in terms of cash) of the bank and they have to maintain the liquidity for giving Advances to their customers.
Suppose a company X want to get the loan from UBL. But the UBL has not that much amount. So it is the responsibility of the treasury department to manage the fund from money market (private financial institutions like Khanani & Kalia).
The narrowest bid/ask spreads and the fastest quotes Dynamic risk-reducing hedging strategies for its customers The best relationships with institutional, corporate and retail clients Year 2003 was a highly lucrative year for the bank with net profits in excess of PKR 4 billion. Treasury and Capital Markets (TCM) contributed to over 65% of UBL's total returns. This was due to Government Bond Trading, Equity Trading, Structured Products/Financial Engineering, Corporate Debt Trading, and Double-Count of revenues. Under the new management, the TCM expedited the launch of Pakistan's first derivative money market product-the FRA (forward rate agreement) with Quetta Textile Mills Ltd. in August 2003, and has further closed several similar transactions thereafter.
UBL TCM is a market maker in both the domestic money market as well as the foreign exchange market. Being one of 11 primary dealers (PD), UBL has one of the largest balance sheets amongst banks in Pakistan, and hence our Foreign Exchange Exposure Limit (FEEL), as imposed by the State Bank of Pakistan,. is the highest in the industry.
Equities is responsible for managing the bank's trading and badla portfolio, and to eventually develop a global equity trading activity for UBL. Structured Products is responsible for developing and packaging plain vanilla derivatives as well as more exotic customer specific products, and pipeline products.
The Strategic Planning and Balance Sheet Management responsibilities include:
Liquidity Management for the domestic balance sheet - This unit is the focal point for all branch-related liquidity issues and will also be responsible for day-to-day management of liquidity for UBL.
Overseas Branches Treasury and Capital Markets - they plan to integrate the treasury activities for all overseas branches, to develop synergies amongst their various treasuries.
2-Corporate Banking
The main objective of the Corporate Banking is to look after the special customers who gives very much big amount of deposits or take higher amounts of Advances. Because a Hub Branch can give the Advances up to Rs. 200 Million. And the party who needs a loan more than Rs. 200 M they have to contact to the Corporate Branch of the UBL. So the cases of Advances more than Rs. 200 M goes into the Corporate Branches. Let us take the example of the Hub Branch of UBL, Hussain Agahi Multan and Corporate Branch of UBL cantt. There are 175 to 200 cases of Advances in the Hub Branch. But in the Corporate Branch there are hardly 15 to 20 cases of Advances due to so much high amount of Advances. And these types of customers are called corporate customers. Because they have taken very much big amount of the Advances it means their business operations and turnover is more frequent. And as a result drawing and repayment of the loan or from their own account is also more frequent. So these types of customers need special care and services as well. But mind one thing that the documentation in case of Advances and Deposits is same in Corporate Branches as well as in Hub Branches is same. The cases of Advances also approve Credit Administration Deptt. (CAD) of the Regional Head Quarter (RHQ).
Our mission is to serve all your corporate needs and ensure your full satisfaction through product innovation, personalized banking, and top notch service. The (Corporate Banking Group) CBG focuses on attracting and servicing large portfolio customers. Our forte is providing exemplary customer service using the "Single Window" concept and product superiority. The Relationship Management team manned by highly qualified individuals from the industry has steadily expanded our customer base and continues to enhance our cordial relations with our esteemed clients.
Despite the sluggish economic growth in recent years, UBL outperformed all the other local banks in the corporate banking sector primarily due to CBG's emphasis on establishing and enhancing relationships with foreign/local blue chip and middle market customers thereby capturing significant market share.
3-Investment
This department supports the Corporate Deptt. When a company wants to install a new project and require the finance from the bank then it is the responsibility of Investment Deptt. that they analyze the targets of the project and success or failure of the project. If it is feasible to loan that party then they pass the loan otherwise not. This is called the Project Finance. Other responsibilities are offering IPOs, TFCs and following services are performed by this Deptt. Now UBL is offering its IPOs (Initial Public Offerings) in June
On behalf of the customers all the banks also make an investment in different companies and industries. And banks receive nominal charge from the customers.
Services
4-HUMAN RESOURCE DPARTMENT
This Deptt. does all the activities related to HR and Personnel Management like Job Analysis, Job Design, Job Description, Job Redesign, Job Specification, Recruitment (is the process of finding and attracting capable applicants for employment through Advertising, Employee Referrals, Private Placement Agencies etc.), Selection by written tests and interviews, Orientation, Training, Career Planning, Performance Appraisal (employee performance and accountability), Compensation and Protection, Union-Management Relations etc. It also involves in the following activities:
Transfers & Postings
Scrutinizing bills (Hospital Bill)
Staff Deceased cases & its Correspondence Retired employees Cases & its correspondence
All staff legal cases & Court at Multan & Lahore. Retrenchment cases
Complaints and its correspondence Fraud & Forgery cases
Mandatory Leaves and its observance. Staff leaves and other related staff matters Goals of all Staff
Disciplinary Action Cases
The HRM department also gives the facility of LPR to their employees.
Leaves Prior to Retirement (LPR)
These are the leaves at the end of the job period (near to retirement) with pay. If some employee has the leaves in credit then he or she can avail that leaves at the end of his or her job. But maximum limit of LPR is one year. And after these leaves he or she will be automatically retired. But if some employee the leaves in credit less than one year, let suppose of nine months, then he or she can avail only that credited leaves (nine month) only but with pay in the facility of LPR.
5-IT DEPARTMENT
Information Technology Deptt. is related with all computer activities like to manage the Central Data Base (CDB) which is placed in Head Office of UBL Karachi in all the daily transactions in all the branches of the country are up-dated on daily basis. This Deptt. also makes the web site new news to web site.
The daily transmission process of data is as following:
A spoke branch up-date the daily transactions through computer networking to the its Central Branch. Suppose all the withdrawing, deposits, remittances, collection and clearing data of the day is sent to the Central Branch. And when the Central Branch receives the data from all the spokes branches under it then that Central Branch up-date the data of all the spokes branches and its own to the Central Data Base (CDB) at Head Office. Corporate Branches and Regional Head Quarters (RHQs) up-date the daily data directly to the Head Office.
6- AUDIT AND INSPECTION
The responsibility of this department is to audit and inspect the operations of the branches. Whether the operations are compliance by the branches in a right way or not. The CCD
(Control and Compliance Department) comes under this department. I will discuss about the CCD in the branch level functions.
7- CONSUMER BANKING
You as an individual can gain and benefit the most through UBL Consumer Banking. In UBL you get friendly, efficient and attentive personalized banking services - a unique banking relationship experienced by each UBL client. You can utilize the following services:
• UBL Credit Card
• UBL Businessline • UBL Cashline • UBL Address • UBL Drive • PLS Term Deposits • PLS Savings Accounts • Uni-Saver • Remittances
UBL CREDIT CARD
It is the Pakistan’s 1st Chip Credit Card, that guarantees you both enjoyment and high value. It assures you global acceptability in more than 22 million establishments worldwide in 130 countries and in more than 12, 000 outlets within Pakistan.
The UBL Credit Card …..Mazay Mein Raho.
This unique high tech CHIP guarantees your security while conducting transactions within Pakistan and around the world. CHIP based credit cards have proven to be the most secure way of conducting credit card transactions globally.
A Choice of Rewards Along with exciting Chip Rewards you have a choice between Free RoadMiles and Free TalkTime.
Spend Rs 5000 anywhere on your UBL Credit Card and get guaranteed 5 litres petrol free from any PSO outlet nationwide. If you spend more, you get more. So keep driving, keep smiling.
Spend Rs 5000 anywhere on your UBL Credit Card and get guaranteed 30 minutes free. What’s more, you get a free Mobilink Postpaid Connection with your UBL Credit
Card.
If you spend more, you get more minutes. So talk freely, stay connected.
Low Balance Transfer Rate – Save big time
Now you can really save big time with your UBL Credit Card Balance Transfer Facility!. Your UBL Credit Card offers a low rate for BTF of outstanding balances from other cards at only 1.5% per month.
Cash Advance
You can now withdraw cash through your UBL Credit Card’s instant cash advance facility from any designated UBL ‘Cards Payments’ Branch nationwide, and at more than 700,000 ATMs and financial institutions worldwide displaying the VISA/ PLUS logo.
-VISA Global Customer Assistance Service and much more…. Eligibility Criteria*
You are eligible to apply for the UBL Credit Card if you are -At least 21 years of age
-A resident of Pakistan
-Employed or managing your own business Documents Required*
-Copy of the Computerized National Identity Card -Any one of the following income documents
-
Salary slip/ Salary Certificate (in case of the Employed Applicants)-
Personal Bank Statement and / or Company Bank Statement (along with business proof), in case of Self Employed ApplicantsUBL BUSINESSLINE
Introduction:
UBL Businessline… a complete solution to all your Business Financing needs. UBL Businessline is a running Finance facility that not only provides funds for growth but also enables you to capitalize on profitable opportunities. With UBL Businessline, now you will surely say: "Ab Hui … Kamiyaabi Meri Manzill'.
What is Businessline?
“It is a ‘Credit Line/ OD Facility’ against Residential Property. It is an evergreen credit line that the customer can use for his/her business expansion”
Features:
Utilize up to Rs.10 million:
Now, UBL Businessline is here to solve all your cash flow problems. You can utilize up to Rs.10 million with the help of which you can now focus on your business expansion and growth.
With UBL Businessline, now you no more need to pay for the entire credit line that you own. Businessline gives you the facility to pay mark up only on the amount that you utilize.
Faster Processing:
After completion of your documentation requirements, UBL Businessline promises you a very smooth and fast processing, hence saving you time and frustration.
ELIGIBILITY CRITERION:
If you fall in the following criteria, then UBL Businessline is just the right choice for you : • Minimum monthly income: Rs. 25,000 and above
• Age: 25– 65
• Resident: Pakistani.
• Self Employed Professional / Self Employed Businessman.
UBL CASHLINE
Have you ever wished for a loan that was flexible enough to be used anywhere, anytime, and as many times as you wanted?
UBL introduces Cashline – the most flexible loan, providing you up to Rs. 500,000/- The perfect solution!
FLEXIBLE
Tired of paying bills yourself?
UBL Cashline can pay them for you!
Wanted to buy appliances for your home?
UBL Cashline can buy them for you!
Maybe even renovate it?
Tired of looking at the same old furniture?
UBL Cashline can get you something you've always dreamt of!
Envious for one of those sleek cars on the road?
UBL Cashline can transform your wheels into a dream car!
Need a vacation?
UBL Cashline can fly you off to a dream destination too!
Short term business needs?
UBL Cashline can send payments to third parties in other cities!
Emergencies?
With UBL Cashline you can sit back and relax.
CONVENIENT
UBL Cashline gives you the convenience of access to cash through multiple options 24 hours a day, truly setting you free!
With every UBL Cashline account you will get:
Cheque Book
Use your UBL Cashline cheques at any online branch throughout the UBL network! You can enjoy the convenience of walking into any UBL online branch across Pakistan and use your Cashline account with ease.
ATM/Debit Card
UBL Cashline comes with an ATM/Debit card so that you have instant access to cash – 24 hours a day, 7 days a week. Wherever you might be, you are never away
from cash. Simply go to any ATM in Pakistan and experience the convenience of UBL Cashline!
How can you get Cashline?
If you are:
• A salaried person of 21 to 60 years, and your monthly net salary is Rs. 10,000 Or
• A self employed business person/professional between the ages of 21 to 65 years, and your monthly net take home income is Rs. 25,000
UBL ADDRESS
UBL Address understands your home financing needs and offers you a variety of fixed, floating & adjustable rate options - because at UBL, you come first.
Fixed Rate for 20 years
Fix your repayments for 20 years today. The fixed markup rate gives you peace of mind and allows you to plan your cash flows better.
Mark-up Monthly, Principal Annually (20 years)
For the first time in Pakistan, UBL address provides an alternative to high monthly rentals by offering a flexible repayment option to suit your cash flows:
-Pay only markup for 11 months every year.
- Pay 5% of principal along with the markup in 12th month every year.
Example, on the loan of Rs. 1,000,000 your annual principal repayment will be Rs. 50,000 while you will only pay the markup as monthly installment (as indicated in the grpah below).
Pay As You Select (PAYS)
In addition to normal financing, UBL Address offers you the facility to design your own repayment plan to suit your present and future expected cash flows.
PAYS-Up (10 yrs, 15 Yrs)
PAYS-Up allows you to start with low installments that increase every year.
For example, on a 15 year loan of Rs. 1,000,000 your monthly installment will begin from Rs. 9,270* in year one and will rise to Rs. 15,679 in year fifteen.
Eligibility Criteria
-Minimum monthly income: Rs.15,000 - Age: 23 to 65 years
- Resident Pakistani
- Self-employed businessman/professional or salaried individual - Minimum loan size: Rs. 500,000
UBL DRIVE
UBL Drive is a unique car financing product which offers you features, options and flexibility unmatched by any other bank, some for the very first time in Pakistan. Because at UBL, you come first.
UBL Drive gives you the opportunity to get the car of your choice financed with minimal documentation. You do not have to provide any income related documents - all that is required is a copy of your NIC and 2 photographs!
Low Down payment Just 10%
In addition to low installments, UBL Drive allows you to drive away in your own car by making a down payment of just 10% - one of the lowest down payment options in the market!
UBL offers a wide range of attractive term deposit schemes to suit your requirements. Deposit period along with projected profit rates of these schemes are given below : Term Deposit Period Projected Rate Of profit
7 to 29 Days notice
Please Contact your nearest UBL Branch.
30 Days and above 1 Month 2 Months Three Months Six Months One Years Two Years Three Years Four Years Five Years
Corporate customers, besides normal current accounts, are also offered special current deposit accounts to cater to their specific requirements at very attractive profit and terms.
• Your share of profit is credited half-yearly and is calculated on monthly balance
• You can withdraw your savings through cheque
UBL UniSaver Account is an innovative way of serving your banking needs. Be it trade, business or personal finance, the UBL UniSaver allows you maximum flexibility, yet gives you optimum returns.
Special Features are;
• Daily Profits on your daily balance
• Higher returns on higher balances
• Attractive rate of return
• Backed by the bank awarded AAA Credit Rating
Deposit Category Projected Rate Of profit (p.a) Over Rs. 100,000 Up To Rs. 3
Million
Please contact your nearest UBL Branch.
Rs. 3 Million upto Rs. 5 Million Over Rs. 5 Million upto Rs. 10 Million
Over Rs. 10 Million upto Rs. 50 Million
Over Rs. 50 Million upto Rs. 250 Million
Over Rs. 250 Million upto Rs. 500 Million
Our remittance products are designed to give you maximum flexibility. Currently, you can send money to almost ANYWHERE in Pakistan by using our popular TezRaftaar
remittance service.
For US residents, UBL offers added flexibility through UBL Click N Remit-- an innovative online remittance service . Sending money from US to Pakistan is just a click away.
UBL is also a member of SWIFT (Society for Worldwide Interbank Financial
Telecommunications). This enables the Bank to provide secure transmission of foreign exchange payments for trade, home remittances and other transfers in a fully automated manner.
Our SWIFT Bank Identifier Code is UNILPKKA
Newyork U.K(UNB) U.A.E Bahrain Qatar
UNILUS33 NBPAGBZL UNILAEAD UNILBHBM UNILQAQA 3. DISCOUNTING OF BILL
Commercial banks also discount the bills and facilitate the business; for example one businessman purchases anything from another person and promises to pay after one month. The seller will write a bill to the buyer and there will be an order that after one month the buyer will pay the amount to the seller. Buyer will sign on the bill. In other words buyer will accept the responsibility of that amount. If seller is in need of money, he will take it to the bank and will receive the money by discounting the bills. The commercial bank also may
rediscount it from the central bank.
7-COMMERCIAL DEPARTMENT
As far as the law is concerned, Banking Companies Ordinance 1962 defines the term banking as following:
-“Accepting for the purpose of lending or investment of deposits of money from the public repayable on demand or
otherwise and withdrawals by cheque, draft, order or otherwise.” The commercial banking has been developed into an important sector economy. It is a service-oriented organization, which performs numerous functions. The functions, which a commercial bank performs, can be divided into following categories.
1. Basic Functions
2. Agency Services Functions 3. General Utility Functions These are classified as following.
Basic Functions These include:
1) Accepting of deposits
2) Making advances and loans
1. Accepting of Deposits
a. Current/Demand Deposit
b. Saving Deposits
c. Fixed Deposit
2. Making Advances and Loans
a. Running Finance b. Term Finance c. Project Finance Agency Services These include: Collection of Cheques Collection of Dividends
Purchase and Sales of Securities
Execution of Standing Instructions
Collection of Bills
Acting as trustees or Executors
Transfer of Funds
General Utility Services These include:
Supplying Trade Information
Issue of Travelers Cheques
Issue of Credit Cards
RUPEE TRAVELLER CHEQUE
UBL offers the facility of the Rupees Traveler Cheque. UBL Rupee Travelers Cheques are the ideal and safest way of carrying cash when traveling anywhere in Pakistan.
• Used for conducting day- to-day business.
• No commission is charged from the purchaser.
• No excise duty on purchase.
• Easy to obtain and encash from all designated 350 branches of UBL.
• Acceptable all over Pakistan.
• Good until used and have unlimited life.
DEPOSIT DEPARTMENT
Deposits act as a backbone of bank. It is the lifeblood of every bank. These deposits are source of generating incomes for the bank and for the general public to meet the financial needs. The supply of money in circulation is also affected by the amount of loans and advances issued by the bank. The primary economic function of the commercial bank is to receive the surplus saving money from the general public, individuals, firm, institutions, public houses and companies and to pay the cheques drawn upon the bank.
The bank accepts the deposits at a low rate of interest and lends it at higher rate of interest, the difference between the lending and accepting rate is the Source of income for the bank. Keeping in view the above factors UBL offers the following types of deposits:
1) Current Deposit
2) Saving Deposit
3) Fixed Deposit
The classification of the deposits in to current, saving and fixed accounts is mainly on the basis of duration and purpose for which the account is maintained at a bank
CURRENT DEPOSIT
Current deposit is running deposit because, customer can withdraw deposited amount at any time, whenever he feels need. The customer can withdraw without any prior notice to the bank. The bank has to pay the cheque provided within the limits of the account balance. The main thing is that bank does not pay any kind of interest on current account. Actually this deposit is for the business purpose. The bank cannot invest the deposited amount under current account heading, because of the fear of withdrawal. Bank has to keep with it a higher reserve ratio to meet the needs of the current account holders.
SAVING DEPOSIT
Saving Account is an important source of funds for the bank. The purpose of this account is to attract the small saving of the general public. Normally workers, schoolboys and employees of the organizations use the saving account facility. UBL also provides this facility to the general
public against a certain rate of interest. The new name of this account is now a day is PLS-Saving Account. If a customer wants to withdraw a large sum of money (above 15000), he will have to give a notice of 7 to 14 days in writing to the bank. Saving account deposits provide a chance to the bank to invest safely, because customer can withdraw small amount of balance.
FIXED OR TERM DEPOSITS
Fixed or Time deposits accounts are the major source of the capital for investment for the bank and cannot be withdrawn as in case of the current account. The amount deposited can be received back after a certain specified period of time. The rate of interest paid on fixed Deposits is normally higher than saving Deposits. The rate of interest also varies due to time period. More the maturity period of the account more the interest is paid by the bank. After the expiry of the period the customer presents the receipt to bank and received the amount in cash or bank added in the customer accounts as agreed between bank and customer.
Q: if the customer withdraw the amount before its maturity period in fixed deposit account
then what would happen?
ANS: Suppose you are the customer of the bank and have fixed deposit in that bank. For example you have deposited Rs. 100,000/- for the one year at the interest rate of 6.50% per month. Accidentally after six month you need your amount back and want to withdraw it. Then it doesn’t mean that you will not get any profit on it at all or you should be charged a fine. Only and only your profit ratio would be reduced because according to the bank policy more the period of fixed deposit more the interest would be paid to the customer by the bank. Suppose that six months fixed deposit rate of interest is 6.00% then it means now you will get the 6.00% rate of interest instead of 6.50%.
The period of fixed deposit account ranges from three months to ten years. It is usually operated by widows, retired pensioners, salaried persons etc. to get the regular (monthly) rate of interest. In Pakistan this account is subject to Zakat deduction.
OPENING OF THE NEW ACCOUNT
A customer can open the following three types of accounts: 1) PLS-Saving Account
2) Current Account 3) Fixed Account
1) Opening of saving Account
Saving account is also divided into two types further, I. Individual saving account
II. Joint Saving Account
I. Opening of Individual Saving Account
An individual person can open this type of account. UBL has defined the following procedures for the opening of individual saving account:
Signature specimen card, the bank to get authorized signature of the customer as specimen for avoiding any future discrepancy gives Customer.
Account opening form, when a customer comes to open the new account in the branch he is given a printed form, to be filled by him. Account opening form consists of full name, address, and date of birth, occupation, telephone number, and N.I.D. card number.
Guaranteed by the existing account holder, when the new account holder fulfills all the requirements then he is asked to give some existing account holder guarantee, so that in future the new account holder may not fraud with the bank.
II. Opening of Joint Saving Account:
Opening procedure for the joint saving is same as in case of individual saving account. Just the difference is in the account opening form.
Signature specimen card is also used for the same purpose as for the individual saving account, to avoid future discrepancy.
Account opening form, joint saving opening from has same information more than one time because more than one person fills this form to open the account. Briefly is that no one/single person can open this account, as a result it is called joint saving account.
Rules and Conditions for Saving Account:
The account opening person knows the rules and conditions.
This account can be opened only with initially Rs. 100 not less than this amount.
2) charitable institutions or provident funds or other funds, associations, societies and firms or clubs.
3) For opening of this account application has to submit on the prescribed form by the bank.
4) Customers can deposit money in his account by using pay-in-slip.
5) Customer must check the signature of two officer of the bank on the deposit slip.
6) Withdrawal, depositor can’t withdraw more than his balance or one quarter. At least 7 days notice must be given to bank for withdrawal purposes.
7) Bank can’t responsible for a cheque, which has been paid prior to receipt of written instructions from the drawer countermanding payment.
8) The bank will take care to see that credit and debit entries are correctly adjusted, but if any mistake is by the depositor/withdrawer than bank will not responsible for the loss.
9) If the account is closed the unused cheques must be returned to the bank for the cancellation and the balance amount, if any must be withdrawn.
10) The profit or loss on the balance due at the time of death will be paid when bank will declare its profit/loss for the half year.
11) Death of account holder, in absence of any instructions the credit balance outstanding in any joint account in the name of two or more persons will be payable to the survivors. 12) The bank to the account holders will supply statement of account every quarter.
13) Amendments of rules, the bank have a right to amend, alter or add to any of these rules with or without notice to the account holders.
2). Opening Of Current account
A person, businessman and organization can open the following types of current account. I. Joint Current Account
II. Individual Current Accounts
III. Sole proprietorship Current Account IV. Partnership Current Account
I.
Joint Current AccountMore than one person can open joint current account. Minimum balance of this account is Rs.l0, 000 approx. If a joint holder dies then bank holds the account and refers case to the
court.
Account opening form, this application form is divided into two sides and both sides have same information which are details of signatory (A, B), name, occupation, nationality, place
and date of birth, national identity card number, business address, employer no. Etc.
II.
Individual Current AccountOnly one person can open individual current account. Minimum balance in this case is 2500, if the balance in the account is less than this limit than bank sends a statement to account holder to maintain the minimum balance. For withdrawal, checkbook is issued and used no other instrument is used or accepted by the bank. Procedure for opening this account is also same as in PLS-Saving account just the difference is in opening form information, required by the bank.
III.
Sole Proprietorship Current AccountIn sole proprietorship organization a person invests his capital and devotes full time to his business. Sole proprietor opens this account. Minimum balance that required in this account is Rs. 1000. All the profit paid on balance will go to the sole proprietor only.
The account opening form of this account is different than others because this form is filled in the name of the organization. The name of proprietor. Place and Date of birth, Nationality, Passport number and National Identity Card number, have to mention on this form.
Documents Required
Following documents certified copies are required with the application: a) Most recent set of Account
b) Current Municipal Licensee
c) Commercial Registration Certificate.
IV.
Partnership Current AccountPartnership current account can be opened with the name of Partnership Company. Before opening of partnership account shareholders has to decide that how many partners have right to sign on cheque. The procedure is same for opening such account; the difference is in the account opening form. Account opening form shows the name in full, nature of business,
principal place of business, address, location, and telephone number, telex number. After that this form is divided into four sides with the name of A.B.C.D. and showing the same information mentioned earlier.
Rules and Conditions
1) Bank can close /down any account at any time upon 48 hours write notice, after the opening of the account.
2) The account number should be mentioned on all correspondence with the bank when deposits or withdrawals are made.
3) The account holder must maintain the minimum balance requirement that is Rs: 1000.
4) After six-month bank refuse the payment of the cheques (post dated cheques). 5) Bank will not make payment if cheque is made unauthorized.
6) Account holder who is unable to sign, he will affix his left-hand thumb. 7) The cheque amount should not exceed to balance of account.
8) Any person opening a current account is deemed to have read, understood and bound by the bank rules and conditions of current account.
DIFFERENCE BETWEEN MANAGER & MANAGER OPERATIONS
The manager of the bank is responsible for the SALES in terms of both Deposits as well as Advances. On the other hand Operational Manager (manager operations) is responsible for the table work being done within that branch. And same is the difference between Area Manager (AM) & Area Manager Operations on the area level. AM is under the Regional Head and is responsible to achieve the targets of Advances as well as Deposits of the Central Branch with the Spokes Branches under it. Area Operational Manager is responsible that the table work of the Central Branch and the Spokes Branches should be done in a right way.
ACCOUNTS DEPARTMENT
ACCOUNTS DEPARTMENT
It is said that accounts department is the backbone of the bank. It plays a vital role in performing different banking functions. The accounts department at UBL Hussain Agahi branch is performing its function manually. Different books of accounts relating with other departments are maintained here. With the help of these books of accounts, accountant prepares monthly, quarterly, semi-annually and yearly financial statements.
The working in accounts department mainly depends upon voucher system. For each and every transaction-taking place in the bank vouchers are prepared and through these voucher contra entries are passed under different heads.
FUNCTIONS OF ACCOUNTS DEPARTMENT
The accounts department performs the following functions: (a) To prepare and maintain the vouchers.
(b) To maintain and update the ledgers for term deposits. (c) To update general ledger.
(d) To prepare different periods statements. Vouchers
Each and every transaction in the bank is made through vouchers; the final place is accounts department for recording these vouchers. Officer in the accounts departments arranges these vouchers according to heads of accounts. These vouchers are of two types:
1. Debit Vouchers 2. Credit Vouchers
These two vouchers are again classified into three following types of vouchers: I. Cash Voucher
II. Clearing Voucher III. Transfer Voucher
